Liz Truss’ £30bn tax cut plans will ‘add fuel to the fire’ and create a ‘sugar rush boom’, Rishi-Sink says.


Conservative leadership candidate Rishi Shankar says Liz Truss’ plans for £30 billion tax cuts will “add fuel to the fire” of inflation and create a “sugar rush boom” in the pair’s ongoing economic clash.

During a live interview with Channel 4’s Andrew Neil on Friday night, in which rival candidate Liz Truss did not appear, the former chancellor was asked about her decision to raise taxes and freeze the income tax threshold in the wake of the pandemic. I was surprised.

The final two candidates clashed over how to deal with the cost of living and inflation – Mr Sink backed his choice to raise taxes while Ms Truss pledged to cut them.

Mr Sink told Andrew Neil that tackling the debt raised by Covid is not about “borrowing” or passing the bills on to the next generation.

“I think it’s absolutely right that we don’t add fuel to the recessionary fire that’s already there.”

He pointed to his long-term growth plan for the economy, including business tax reform, “so companies can innovate more”, deregulation and creating free ports.

When pressed by Andrew Neill about whether the project would take too long, Mr Sink said: “What we should be doing is focusing on long-term growth… not the sugar rush that we’ve got. Feel better for months.”

He also defended his decision to freeze the income tax rate, saying it was considered “progressive” by independent economists at the time and had promised as prime minister the highest “in 16 years”. Income tax will be cut.

When asked why she did not appear on Channel 4, Foreign Secretary Liz Truss told reporters that she was celebrating her 22nd wedding anniversary.

He has accused Mr Sink of “scaring” him after attacking his economic plan, saying it would push interest rates to 7 per cent and pass the cost on to the next generation.

Ms Truss has said Mr Sink’s economic plan will lead the UK into recession and make the country uncompetitive internationally.

“What I’m talking about is creating opportunities, continuing growth, keeping taxes down. That will see the economy grow, and that will allow us to pay back our debt faster. There will be,” he said Friday from Norfolk.

Liz Truss at a campaign event in Dereham

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Mr Sink, the son of migrants, told Andrew Neil on Friday that “there is a limited number of asylum seekers we can integrate”.

He said it would be his “priority” to get Boris Johnson’s controversial Rwandan pilot “up and running” if elected prime minister.

The pilot, which was halted by the High Court at 11am, will see 200 migrants trying to settle in the UK be flown to Rwanda.

The African country originally agreed to take 1,000 migrants from the UK in a £120m trial deal, but now only has the capacity to take 200.

There are plans to house 100 migrants at the £58-a-night Hope Hostel – which will cost the British taxpayer up to £5,800 a night – while a further 100 are being sought at several other locations. .

When pressed about the cost of the pilot, Mr Sink told Andrew Neil that it currently costs £5m a day to house people in hotels in the UK.

He claimed that once the pilot was ready and acted as a “strong deterrent” then “tens of thousands” of asylum seekers would not try to settle in the UK.

“My priority is to make this policy work… If it means tens of thousands are not coming here, we will save.

“Because there is a limited number of asylum seekers we can assimilate.”

Rishi Sink at a campaign event in Tunbridge Wells

/ POOL/AFP via Getty Images

He said: “We clearly have a problem with human rights law in this country” and said it was right to “control” the asylum seeker and migration process.

Mr Sink backed government plans to pass a British Bill of Rights to replace the Human Rights Act to make it easier to deport foreign nationals.

He and Liz Truss are taking part in TV debates and hustings across the country this week to drum up the most support from Tory MPs.

Mr Sink admitted that “the polls say I’m behind in the race” but insisted he would “fight for every vote”.

Mr Sink also pledged this week to crack down on sexual violence and funding of £192m a year. They Wrote in the Daily Mail That funding will go towards victim support, including 1,000 independent sexual violence counselors and 24/7 support for rape victims.

But he suffered a major blow when Defense Secretary Ben Wallace announced he would back Liz Truss and questioned Mr Sink’s experience for the top job.

Meanwhile, Liz Truss, when asked during a visit to Norfolk on Friday if she was confident she was now ready to win the leadership contest, said: “I’m not at all satisfied. “Fighting for votes.”

The final two candidates will compete in a debate on Sky News on August 4. A new leader and prime minister will be elected on September 5.

Tory party members will receive postal ballots early next week.